Mortgage rates are creeping up as the resumption of hostilities between the US and Iran sends fresh shocks through the global economy just as Andy Burnham takes office.

The incoming PM said that he planned to be ‘upfront’ with the US president, who has threatened to target Iran’s civilian infrastructure.

Analysis from financial comparison site Moneyfacts showed 13 major lenders have put up borrowing costs as renewed fighting in the Middle East stokes inflation fears.